The macro view of Bitcoin (BTC) – Flowchain Internship
I analyzed Bitcoin in a Macro view this week.
Characteristics of Bitcoin (BTC)
- The smallest unit of Bitcoin (BTC) is ten negative eight powers called 1 satoshi. Any device can connect to the Internet and can work as the vehicle of BTC which is more convenient than fiat money.
- It is well-known that the total supply of BTC is fixed at twenty-one million whose scarcity is guaranteed by the code.
- The highlight is that Bitcoin (BTC) has run for more than ten years. No one really can break this system. The consensus that BTC uses is valuable and getting stronger.
What is the next generation for currency? It is possible that Bitcoin is the next generation currency. Centralization makes things more efficient but it also creates a lot of problems.
The entire financial system has expanded into an ecology of the bank. The ecology is huge and interdependent.
Centralized Crisis
In 2008, bankers combined many subprime mortgages（it means the credit loan that applies to people with poor credits）and sold them out. Everyone thought it was a stable investment target with a high return without the awareness of the the high risk. It was too late when people finally realized it. The crisis became global in scale even for the people or industries who weren’t involved in the money game. Half of the world was suffering due to the crisis.
Government is a highly centralized organization. Zimbabwe, a country in southeastern Africa, have a banknote. The denomination is 100 trillion. It’s kind of funny but for the people in Zimbabwe, it’s a nightmare. Due to the corruption of their government, the people have to suffer from the highest inflation rate in the world.
If something serious happens in the world, it will influence the money in the bank, such as the bankrupt or the upcoming war. If all the people want to get their money out from the bank, the bank run will happen.
So what is the role of bitcoin in this world now?
In my opinion, it’s a hedging asset when there is a Geopolitics crisis. Bitcoin will be one choice for people who want to hedge the risk. I have summarized some historical events, and I will show you next week. Also, I will show you how I analyzed this week’s Bitcoin price with Geopolitics and some other data.
Published at Fri, 16 Aug 2019 05:11:53 +0000
Bitcoin Pic Of The Moment
By CashlessWay – Global Hub for ePayment Culture on 2014-06-28 09:38:56
